The rumors have been going on (and off) for a couple of years, so today’s XM/Sirius announcement doesn’t come as a huge shocker. They’re hoping to seal the deal by the end of the year. Though, we’ll see if regulators (and shareholders?) allow it to go through… HD Radio is advertising heavily here in the DC area (home of the FCC and Congress) which actually should help XM/Sirius make the argument that they aren’t competing against each other, but rather they are competing against AM, FM, and now HD… plus Internet radio.
While a joint satellite radio company should be able to share a variety of expenses and thus cut costs, they also get to share debt and the challenge of attracting and retaining subscribers. If the merger comes to pass, current Sirius CEO Mel Karmazin will run the company with Howard Stern as CFO.